Leadership Styles and Motivational Theories - Coursework Example

?Suitability of Different Leadership Styles and Motivational Theories for a Small Business Introduction The success of small businesses depends on how employees are motivated in contributing to the overall success. Entrepreneurs should understand that their system of leadership can either motivate employees or make them unwilling to contribute. Most small businesses have failed due to leadership styles and motivational approaches taken in handling employee’s affairs. Some of the theories that can provide small business entrepreneurs with important advice on how to handle employees are discussed in this paper. Motivational Theories for a Small Business Maslow’s Hierarchy of Needs One of the best known motivational theories is known as Maslow’s Hierarchy of Needs. According to Abraham Maslow, human beings have some basic needs which occur according to the level of their importance. The lowest needs in the hierarchy of needs that must be met first include food, water, air, sleep, and sex. The next level after the first hierarchy involves needs such as safety and security, followed by other social needs such as self-esteem. The highest level in the hierarch has self-actualization needs (Hatten 2011, p. 415). Small business entrepreneurs should be aware that their workers will not always demand these needs in a similar manner and in the same order. There are instances whereby employees will be at different levels of needs in different instances. However, sometimes the needs may occur simultaneously. To cater to the varying employee needs, a variety of ways to motivate their behavior are required. For instance, the use of money to motivate employees can pose challenges at the work place. In most small business environments, money is seen as providing basic physiological needs but not being important for the employee to achieve other needs in the hierarchy. Money should be seen as a motivator because it ensures there is availability of time and resources needed to make the business successful and achieve self-actualization. Social needs and esteem needs can be met at the workplace through organizing social events or recognition from the manager and be more effective motivators than money, depending upon the person (Hatten 2011, p. 415). Maslow’s theory helps entrepreneurs to learn that in the process of motivating their employees, they should recognize that people have needs that arise suddenly and continue to require attention until they are satisfied. Employees can have lower end needs that must be met before they concentrate on a higher level need. Employees must have good food, water and air before they begin to achieve social needs at the workplace. Socialization at the workplace cannot be attained when the lower end needs in the hierarchy, which are important, are not met (Miner 2007, p. 27). Herzberg’s Motivation-Hygiene Theory Another important theory of motivation in the small businesses is known as Herzberg’s Motivation-Hygiene Theory. Small business entrepreneurs can benefit from this theory since it states that the factors that produce job satisfaction are not the same as those that motivate employees to excel. Herzberg referred to the factors that cause employees to feel good about their job as job hygiene factors. Job hygiene factors such as safe working conditions and reasonable pay should be met at the workplace. In addition, the presence of these factors leads to contentment among employees but may not motivate them to excel. True motivation at workplace may require factors such as recognition, advancement, or job enrichment (Hatten 2011, p. 415). The most important aspect to consider in motivating employees for the small businesses is to know what is important to them. For instance, if the entrepreneur avails a motivational reward that is not appropriate to the employees, it may look like a form of punishment (Miner 2007, p. 27). Leadership Style for a Small Business Many scholars and leadership experts argue that leadership is the driving force of any organization. This is because good leadership leads to success while bad leadership leads to the failure of an organization. A good leader in this case is one who encourages his team to be creative and thinks beyond with the aim of finding solutions to any given problem. He is also the one who lays great stress on beliefs, values and ethics of an organization. Nevertheless, it has been observed that many business leaders tend to adopt different leadership styles, which refers to the approach and manner of giving direction, implementing plans and motivating workers. According to Kurt Lewin (1993), three leadership styles are commonly adopted by leaders. As noted by Kippenberger (2002, p. 9), these include authoritarian or autocratic, participative or democratic, and free reign or delegative leadership styles. But how suitable are these leadership styles to a small business? Authoritarian/Autocratic Leadership Style An authoritarian leader is one who mobilizes his team towards achievement of a common goal, leaving the means up to every worker according to Kippenberger (2002, p. 12). It is a style in which a leader dictates to his workers what he wants done and demonstrates how he wants the work accomplished without engaging the opinion of his followers. For a small business, this style should only be adopted by a leader when they have all the information that they can use in solving problems especially when the leader is short of time and the employees are already well motivated according to Kippenberger (2002, p.13). A small business manager can also use the style when employees need a new vision due to changes in circumstances or in situations where explicit guidance is not needed. Nevertheless, a small business leader should be more cautious not to use the style when working with a team of experts who appear to know more than him or her. Democratic/Participative Leadership Style This is arguably the best style a leader can ever use since it motivates workers towards achievement of organizational goals. Mehrotra (2005, pp. 12–18) notes that the style involves the leader incorporating some or all of his followers in decision making process. For a small business, involving employees in decision making process help in determining what needs to be done and how best it should be done. Research shows that most employees are motivated when they are incorporated in decision making process (Kippenberger (2002, pp.18–19). However, the final decision lies with the manager. This implies that small business entrepreneurs should consider using participative leadership style in their day-to-day operation. This is because a leader cannot know everything, which explains why employees are hired. This style is suitable to a small business when the leader has some information and his followers also have some parts. Delegative/ Free Reign This is a leadership style in which employees are given chance to make decisions. Despite the employee being given decision making authority, the leader is still responsible for the decisions made by the employee as noted by Kippenberger (2002, pp.14–16). This leadership style is suited to small business since it helps train employees to be future leaders. For instance, a manager cannot stay at his place of work every day due to other commitments. This implies that it is prudent for the decision making authority to be left to someone who the leader feels can make a good leader. This means that without delegating authority to some employees, knowing whom to delegate to in time of need may not be easy. As such, it should be used in small businesses only when a leader fully trusts and has confidence in his followers. Conclusion It is apparent that success of an organization depends highly on leadership style adopted and the ability of a leader to motivate his followers. In this regard, small business entrepreneurs need to use the Maslow’s and Herzberg’s motivational theories as a guide in their day-to-day running of their businesses. Moreover, based on the fact that different leadership styles can be adopted depending on the prevailing circumstances, it is important that small business leaders use a mixture of all the leadership styles for the success of their businesses. References Hatten, T 2011, Small business management: entrepreneurship and beyond, Cengage Learning, New York. Kippenberger, T 2002, Leadership styles, John Wiley & Sons, Upper Saddle River, NJ. Mehrotra, A 2005, Leadership styles of principle, Mittal Publications, New Delhi. Miner, J 2007, Organizational behavior: from theory to practice, M.E. Sharpe, New York. Read More